• $300M program offers low-interest loans for low emissions trucks, utes and machinery 
• Offers a carrot, not a stick, to reduce emissions on-farm
• Farmers want to reduce emissions whilst remaining profitable 

The Emissions Reduction Incentive Program will offer loans at 1.15% less than market rates through NAB’s arrangement with the Government-owned Clean Energy Finance Corporation. Hybrid, electric and hydrogen powered trucks, utes and machinery, will be eligible.

Some $300 million is available under the program, with loans expected to largely be in the amount of $1 million to $5 million. This means eligible businesses could save in the order of $50,000 a year on interest costs.

FCA CEO Natalie Collard said it was fantastic to see the Government using the carrot rather than the stick on emissions reduction.

“This is exactly the sort of program our 8400 members have been calling for. Farmers want to know how to reduce emissions whilst remaining profitable, and this program gives them a way to do that, if they choose. That’s how you keep farming. Credit where credit is due,” Ms Collard said.

“Farmers know why we need to reduce emissions – this year’s bushfires remind us that climate change is hurting farmers now.

“We warmly welcome this scheme because it gives farmers choice. If a farmer wants to choose a hydrogen, hybrid or electric powered machinery, the farmer can choose to take a low-interest loan to get it. As the technology proves itself, other farmers can also choose low-emissions machinery if they wish.

“Australia’s farmers have a tradition of clean, green farming, and we want to continue that tradition so our kids can farm forever.”

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